Unit Linked Insurance Plan: Our Take & Value Add

 In Blog

Most of us have not had a particularly good experience with ULIP, even though it comes with several advantages.

This is because, the insurance companies have typically loaded their ULIP offering with various costs such as Policy Allocation/Administration charges, Fund Management Charges etc. A typical ULIP investor is very discouraged on finding that he just about breaks even after five to seven years.

At the same time, most of us do not leverage the tax efficiency feature that ULIP provides for (Switching from Debt to Equity & Vice Versa attracts neither tax nor transaction cost). As such ULIP is a very powerful tax efficient tool for rebalancing our portfolio. Please note that debt to Equity shift may otherwise attract tax rate as high as 33% on gains.

Further, ULIP comes with another advantage that it attracts no Capital Gains Tax on maturity and as such provides an ideal way to buid annuity.

We at WealthSpring bring significant value addition w.r.t your ULIP portfolio

  • Our deep expertise of Fixed Income & Equity markets ideally positions us to advice you on rebalancing your ULIP fund allocation from time to time.
  • Furter, we also help our customers in not only assessing how much ULIP exposure is ideal for their portfolio but also in identifying low cost ULIP products so that their investment does not suffer.

We are happy to keep track of your ULIP investments and from time to time advice on rebalancing the fund allocation so as to optimize your returns.

Do let us know if you are interested and we will send you an excel format to fill, that will capture various details w.r.t. your ULIP investments and share with us at rajesh.prasad@wealthspring.in / Satish.mishra@wealthspring.in

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